Amazon (AMZN)
Consumer Discretionary · $2.78T market cap · SEC CIK 0001018724
fundamentals score out of 100
Next reports on Oct 28, 2026, after the close, with analysts expecting $1.99 in earnings per share.
The case for AMZN
- Earns 31% back on shareholder equity.
- Holds more cash ($86.8B) than long-term debt ($65.6B).
- Revenue growing 15.8% year over year.
- Earnings per share up 89.7%.
- A PEG of 0.23: a P/E of 20.6× is low for EPS growing 90%.
- Has compounded revenue at 13.2% a year over five years.
The case against
- Only 10% of FY2025's $77.7B profit arrived as free cash.
- Swings harder than the market (beta 1.50).
- Free cash flow is only 0.3% of its market value, a thin cash return for the price.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Consumer Discretionary companies (momentum is judged against fixed thresholds only), and the five are blended by weight. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings, sales, assets and cash | 42 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 82 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 61 |
| Momentumhow the price has behaved lately | 63 |
| Stabilityhow violently it moves, what it owes and what it pays you | 68 |
- Each factor except momentum is half fixed thresholds, half rank among the 48 Consumer Discretionary companies.
Key numbers
| Price / earnings | 20.6× |
|---|---|
| Price / book | 4.65× |
| Price / sales | 3.6× |
| Revenue growth (YoY) | +15.8% |
| EPS growth (YoY) | +89.7% |
| Gross margin | 51% |
| Operating margin | 12% |
| Net margin | 17% |
| Return on equity | 31% |
| Debt / equity | 0.28× |
| Current ratio | 1.03 |
| Dividend yield | none |
| Beta | 1.50 |
| 52-week range | $196.00 – $287.20 |
| Position in that range | 65% of the way up |
| 3-month return | +5.8% |
| 1-year return | +11.7% |
Five years of financials, as filed
Pulled from Amazon's XBRL filings on SEC EDGAR. Italic rows are derived from the rows above.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue | $717B | $638B | $575B | $514B | $470B |
| Operating income | $80.0B | $68.6B | $36.9B | $12.2B | $24.9B |
| Net income | $77.7B | $59.2B | $30.4B | -$2.7B | $33.4B |
| Operating cash flow | $140B | $116B | $84.9B | $46.8B | $46.3B |
| Capital expenditure | $132B | $83.0B | $52.7B | $63.6B | $61.1B |
| Total assets | $818B | $625B | $528B | $463B | $421B |
| Shareholder equity | $411B | $286B | $202B | $146B | $138B |
| Cash | $86.8B | $78.8B | $73.4B | $53.9B | $36.2B |
| Long-term debt | $65.6B | $52.6B | $58.3B | $67.2B | $48.7B |
| Free cash flow | $7.7B | $32.9B | $32.2B | -$16.9B | -$14.7B |
| Operating margin | 11.2% | 10.8% | 6.4% | 2.4% | 5.3% |
| Net margin | 10.8% | 9.3% | 5.3% | -0.5% | 7.1% |
| Diluted shares | 10.8B | 10.7B | 10.5B | 10.2B | 10.3B |
Share count is up 5.2% over 4 years. Mild issuance.
What Amazon says it does
This Annual Report on Form 10-K and the documents incorporated herein by reference contain forward-looking statements based on expectations, estimates, and projections as of the date of this filing. Actual results and outcomes may differ materially from those expressed in forward-looking statements. See Item 1A of Part I — "Risk Factors." As used herein, "Amazon.com," "we," "our," and similar terms include Amazon.com, Inc. and its subsidiaries, unless the context indicates otherwise. General We seek to be Earth’s most customer-centric company. We are guided by four principles: customer obsession rather than competitor focus, passion for invention, commitment to operational excellence, and long-term thinking. In each of our segments, we serve our primary customer sets, consisting of consumers, sellers, developers, enterprises, content creators, advertisers, and employees. We have organized our operations into three segments: North…
Risk factors AMZN lists in its 10-K
- Our Expansion into New Products, Services, Technologies, and Geographic Regions Subjects Us to Additional Risks
- Our International Operations Expose Us to a Number of Risks
- The Variability in Our Retail Business Places Increased Strain on Our Operations
- We Are Impacted by Fraudulent or Unlawful Activities of Sellers
- We Face Risks Related to Adequately Protecting Our Intellectual Property Rights and Being Accused of Infringing Intellectual Property Rights of Third Parties
- Our Expansion Places a Significant Strain on our Management, Operational, Financial, and Other Resources
- We Experience Significant Fluctuations in Our Operating Results and Growth Rate
- We Face Risks Related to Successfully Optimizing and Operating Our Fulfillment Network and Data Centers
- We Could Be Harmed by Data Loss or Other Security Incidents
- We Face Risks Related to System Interruption and Lack of Redundancy
- The Loss of Key Senior Management Personnel or the Failure to Hire and Retain Highly Skilled and Other Personnel Could Negatively Affect Our Business
- Our Supplier Relationships Subject Us to a Number of Risks
- Our Commercial Agreements, Strategic Alliances, and Other Business Relationships Expose Us to Risks
- Our Business Suffers When We Are Unsuccessful in Making, Integrating, and Maintaining Acquisitions and Investments